The Law Commission of England and Wales has provided suggestions to amend digital asset rules in the UK and bring crypto assets under the purview of personal property.
The UK has received new suggestions on digital asset rules from an independent body. The Law Commission of England and Wales, has published a report on crypto assets, providing the new ideas. According to the Commission, crypto assets should come under the ambit of personal property as a new law reform.
The Commission’s official report stated, “We conclude that the flexibility of common law allows for the recognition of a distinct category of personal property that can better recognize, accommodate, and protect the unique features of certain digital assets (including crypto-tokens and crypto assets).”
Meanwhile, the Commission has suggested that crypto assets should come under an entirely new category of personal property. It noted the move would enable the crypto sector’s growth and create a legal framework for the industry. While the Commission said the government was reviewing the suggestions, it said the courts should also step into the process.
In the UK, regulators like the Financial Conduct Authority and the Bank of England are actively involved in crypto regulations. Favorable regulatory policies also enabled private crypto firms to expand into the UK.
Moreover, a transparent regulatory framework can offer significant benefits to all stakeholders in the crypto industry. By providing clarity and structure, regulation can foster investor confidence, protect consumers, and prevent the misuse of crypto for illicit activities.
Regulatory oversight can help establish transparency, disclosure, and investor education standards. As a result, crypto regulations can actually lead to wider adoption of the sector.
The UK has taken many initiatives in this regard in the recent past. Its regulators have regularly engaged with the industry to frame regulatory rules.
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